EURUSD tested the 1.153 support! That is a crucial line for the long-term situation on the chart (neckline of the huge H&S formation). A test was positive for the buyers as the price bounced and went 80 pips higher creating a long tail on the daily candle. This optimism is not kept today as the price is about to test this support again. Price closing a day below that level will be very negative.
USDCAD with a beautiful buy signal. The price bounced from the upper line of the wedge formation and went higher. After this, we got a bullish flag formation. Most recently, we broke the upper line of this pattern. In addition to that, yesterday, the daily candle broke the horizontal resistance on the 1.317 – that is a strong buy.
GBPJPY continues the downswing after the price bounced from four important resistances. That is a very strong sell signal. Yesterday, buyers tried a small reversal but the beginning of the day brings us a decisive drop. No hopes left.
This article is written by Tomasz Wisniewski, a senior analyst at Alpari Research & Analysis
This article was originally posted on FX Empire
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